The agencies spent eight months engaging with more than 200 people and 65 organizations in the process, including local residents, national experts, clean energy companies, nonprofits, and Rhode Island’s utility, National Grid. The aim was a blueprint outlining how the state can achieve a cleaner, more affordable, and more reliable energy system—one that adapts and evolves as consumer demand and technology does.
The decision received overwhelming support from stakeholders, including customer advocates and environmental advocacy organizations.
“It’s a big first step,” said Mark LeBel, a staff attorney with the clean energy nonprofit Acadia Center, which was a stakeholder in the project. “We can’t do it all at once, and I think Rhode Island has taken a big first step here.”
Read the full article from Energy News Network here.
After months of hearings and negotiations, an energy initiative called grid modernization is moving forward in Rhode Island, along with new gas and electricity rates.
On Aug. 24 the state Public Utilities Commission (PUC) approved a new model for compensating National Grid for operating and maintaining utility poles, transmission lines, and substations. For the next three years a portion of National Grid’s revenue will also go to making the power grid more cost-efficient and accommodating to renewable power, electric vehicles, and energy storage.
The settlement, approved unanimously by the Rhode Island Public Utilities Commission in an open meeting, gives the state’s dominant utility about one-third of its original $214.8 million request made last November and less than two-thirds of a revised request of $137.5 million that factored in changes to federal taxes by the Trump administration.
The version of the settlement amended by the commission is also about $4.5 million lower than the initial iteration that was filed in June and resulted from negotiations between the Rhode Island Division of Public Utilities and Carriers, National Grid, the state Office of Energy Resources and other stakeholders, such as nonprofit groups the George Wiley Center and Acadia Center.
Read the full article from the Providence Journal here.
PROVIDENCE — Acadia Center applauds the Rhode Island Public Utilities Commission’s (PUC) approval today of an amended comprehensive settlement in National Grid’s distribution rate case and Power Sector Transformation proceeding. The PUC’s order represents the first steps toward utility business model reforms and power sector transformation activities that will further Rhode Island’s ability to achieve a clean energy future.
“Approval of the revised National Grid settlement will greatly benefit ratepayers and the state by putting Rhode Island firmly on a path toward expanding local clean energy resources and bolstering energy system reliability,” said Daniel Sosland, Acadia Center President. “Rhode Island has jumped into a leadership role among New England states seeking to reform utility regulations. Embracing the changes needed to modernize the energy system will deliver large economic, public health, consumer and environmental benefits to all Rhode Islanders.”
The agreement lowers National Grid’s return on equity and reduces the utility’s original base rate proposal by over $40 million. The agreement also provides more meaningful bill relief for low-income customers, up to a maximum discount of 30% for some qualifying customers. Importantly, the agreement also approves initial investments in a modern grid, electric vehicle charging, and energy storage as well as a study of Advanced Metering Functionality (AMF) and further grid modernization investment.
“Acadia Center commends the Public Utilities Commission, Division of Public Utilities and Carriers, National Grid, the Office of Energy Resources and other intervenors for the commitment and collaboration throughout this process,” said Erika Niedowski, Rhode Island Director for Acadia Center. “We look forward to working with our colleagues through the newly established Power Sector Transformation Advisory Group to advance further reforms including new utility performance mechanisms, grid flexibility and resiliency, and expansion of clean energy resources that benefit customers.”
Acadia Center engaged in every stage of Rhode Island’s Power Sector Transformation stakeholder process and provided expert testimony to the PUC on a variety of components in today’s settlement. Acadia Center has long recommended the types of reforms included in the settlement through reports and materials such as UtilityVision.
“Rhode Island is now leading the way in New England utility business model reforms,” said Mark LeBel, staff attorney at Acadia Center. “In the future, Rhode Island must do even more to shift investments away from expensive capacity building projects that primarily benefit the utility and toward projects that benefit the customer by maximizing energy efficiency, expanding distributed energy resources, and bolstering system reliability.”
Acadia Center will release a more detailed summary of the approved settlement in the coming days.
“The settlement includes several changes to the utility business model, which should begin to change the incentives for National Grid — away from traditional capital investments and towards outcomes that benefit consumers and the environment,” Mark LeBel, staff attorney for the Boston-based Acadia Center, wrote in comments to the PUC.
Read the full article from the Providence Journal here.
PROVIDENCE – Today, a comprehensive settlement was filed on behalf of all parties in two related dockets at the Rhode Island Public Utilities Commission: National Grid’s rate case and the Power Sector Transformation docket. Acadia Center strongly supports the settlement because it begins to reform the utility business model, makes significant investments in a modern and efficient electricity grid and new clean energy programs, and lays out a pathway for even more ambitious and rigorous reforms. It also saves ratepayers over $40 million in base rates across three years from National Grid’s original proposal and results in a 25-30% bill discount for low income customers. This settlement follows in the footsteps of the Power Sector Transformation Initiative created at the direction of Governor Gina Raimondo.
“New clean energy technologies at lower costs offer an historic opportunity to build a modern, more equitable energy system that benefits consumers, reduces pollution and improves economic productivity,” said Daniel Sosland, president of Acadia Center. “With this settlement, Rhode Island jumps into a leadership role among the states on utility regulatory reform necessary to position it for further progress in coming years. Acadia Center is thrilled that Rhode Island is moving to embrace this future and remains committed to ensuring that the state and its residents see significant benefits from these reforms.”
Acadia Center participated in every phase of the Power Sector Transformation process in 2017 and filed testimony in both dockets covered by today’s settlement. Acadia Center has long advocated for states to embrace the types of reforms included in the settlement, through reports and materials such as UtilityVision. This includes reforms to the utility business model that place less emphasis on capital investments and more on results, improvements to the efficiency, intelligence and flexibility of the electric grid, and planning improvements to efficiently use local energy resources and provide customers with better incentives.
“Rhode Island is poised to be the first state in New England to implement serious reforms to the utility business model,” said Amy Boyd, senior attorney at Acadia Center. “This is a key step to incentivizing utilities to act in the public interest, instead of merely advancing their own bottom line.”
The settlement also includes new clean energy programs to facilitate increased adoption of efficient electric heating technologies, new investments in electric vehicle charging stations, and competitive procurements for advanced energy storage. It creates a pathway for critical next steps such as a study of advanced metering functionality and time-varying rates and further utility business model reforms.
“Electrification of heating and transportation are crucial pieces of a long-term greenhouse gas reduction strategy. New programs and investments should help push Rhode Island forward in the coming years.” said Mark LeBel, staff attorney at Acadia Center. “In addition, Acadia Center looks forward to next steps and further reforms in Rhode Island. Providing Rhode Island ratepayers with more efficient electricity rates that reflect the costs of electricity usage and help lower peak demand will be key to a smarter electricity system and integrating electric vehicles and heating.”
“Acadia Center would like to thank the Division of Public Utilities and Carriers, National Grid, the Office of Energy Resources and other intervenors for all of the hard work and collaboration that went into this settlement,” said Erika Niedowski, policy advocate in Acadia Center’s Providence office. “Collaboration and an open exchange of ideas is crucial to developing policy solutions that meet the needs of a wide range of stakeholders. Establishing the Power Sector Transformation Advisory Group provides a new forum to continue this dialogue on key issues in the coming years.”
Providence, R.I. — Today, Abigail Anthony, Ph.D., will appear before the Rhode Island Senate for hearings to confirm her appointment by Governor Gina Raimondo as commissioner on the Rhode Island Public Utilities Commission (RIPUC). Dr. Anthony is currently director of Acadia Center’s Rhode Island Office and its Grid Modernization Initiative.
Since Dr. Anthony began at Acadia Center in 2007, she has had a leading role in advancing Rhode Island’s energy efficiency policies and grid modernization to achieve a sustainable and consumer-friendly energy system. This work will continue as she joins the Rhode Island PUC, which is working at the behest of Governor Raimondo to develop a more dynamic regulatory framework that will enable Rhode Island and its utilities to advance a cleaner, lower-cost energy system.
“In the decade that Abigail has been leading Acadia Center’s work in Rhode Island, the state has become a national leader in energy efficiency and adopting reforms to advance clean energy,” said Daniel Sosland, president of Acadia Center. “Abigail’s efforts have been instrumental in this progress and have helped build the foundation for a cleaner, more consumer-friendly and lower-cost energy system for Rhode Island’s businesses and residents. Governor Raimondo’s recent directive to take steps to modernize the power grid indicates that the state is serious about building a clean energy future. RIPUC will play a central role in determining Rhode Island’s energy future. Acadia Center will miss Abigail, but we are excited that she will bring her thoughtful, reasoned approach to the challenging issues before the PUC.”
In collaboration with the Office of Energy Resources and Division of Public Utilities and Carriers, the Public Utilities Commission is currently working to draft regulations that will allow clean energy resources to be integrated into the grid more easily. To comply with the Governor’s directive, they will explore utility function and compensation, the effects of adopting electric vehicles and electric heating, and means of expanding customer and third-party participation.
Today’s Senate committee hearing has been scheduled to confirm Dr. Anthony’s nomination. Acadia Center looks forward to continuing its work in Rhode Island to advance a clean energy future that will build a stronger economic future, improve public health and reduce climate pollution through initiatives expanding energy efficiency, clean energy and transportation, power grid modernization and community energy.